Top 5 Companies With The Highest Dividend Yield

With the FY13 annual results due in a short while, investors will be looking forward to their annual dividends. Here, we are looking at the top 5 companies having the highest dividend yield. To arrive at this list, we have pursued to the following methodology.

We have considered only those companies that have had a consistent dividend payment history for the last five years. The next criteria of boiling down to these 5 are their market capitalisation and equity capital. Only companies with a market cap of more than Rs 100 crore and an equity capital of more than Rs 50 crore have been considered.

Following are the 5 companies:

Oil India: Oil India engages in the exploration, development, and production of crude oil and natural gas in India and internationally. The company is also involved in the transportation of crude oil and production of liquefied petroleum gas, and provides various exploration and production related services. The company has exploration and production projects primarily in India, Libya, Gabon, Iran, Nigeria, and Sudan. It holds 1,56,890 sq. kms. acres of land covering 78 blocks, owns and operates 13 drilling rigs, 14 work-over rigs, 1,432 kms. of cross-country crude oil pipelines and is an owner of 10 crude oil pumping stations and 17 repeater stations in the Indian states of Assam, West Bengal, and Bihar.

The company has a history of paying out dividends consistently for the last 5 years, with the FY12 dividend yield standing at 9% and the market capitalisation standing at Rs 12,516.62 crore. The company has secured the top slot in our list.

SRF: Established in 1970, SRF is engaged in the manufacturing and selling of technical textiles, chemicals, packaging films, and engineering plastics in India. The company’s technical textile products include tire cord fabrics for use as reinforcement material in cycles, passenger cars, light commercial vehicles, heavy commercial vehicles, tractors, and off-the-road tires. Its packaging films consist of bi-axially oriented poly-ethylene terephthalate films under the PETLAR brand. SRF also exports its products to approximately 75 countries worldwide. The company was formerly known as Shri Ram Fibres and changed its name to SRF in 1990.

With a market capitalisation of more than Rs 1,000 crore, the company has a dividend yield of 8% as of FY12 and has been paying out dividends consistently for the last 5 years.

JBF Industries: JBF Industries engages in the manufacture and sale of polyester chips in India and internationally. The company offers textile grade and film grade polyester chips, bottle grade polyethylene terephthalate, partially oriented yarn, and fully draw yarn to name a few. Its products are used for various applications such as food grade packaging, mineral water, and soda drinks, as well as APET sheets and pharma applications. The company was incorporated in 1982 and is based in Mumbai.

The company has a history of consistently paying out dividends for the last 5 years and its FY12 dividend yield stands at 8% and the market capitalisation stands at Rs 746.49 crore.

ISMT: ISMT engages in the manufacture and sale of seamless tubes, tube-based products, and alloy steels for the power, construction equipment, automotive, general engineering, bearings, oil and gas exploration, and other sectors, primarily in India. The company offers carbon, alloy, and martensitic stainless steel bars, including ultra-clean steels, free machining steels, bearing steels, and other specially engineered steel grades. ISMT also exports its products. The company was founded in 1977 and is headquartered in Pune.

With a market capitalisation of Rs 164.96 crore, the company has a dividend yield of 7% as of FY12 and has been very consistent in the payment of dividends for the last 5 years.

Mahindra & Mahindra Financial Services: Mahindra & Mahindra Financial Services is a non-banking financial company, provides financial products and services for the rural and semi-urban sector in India. The company offers vehicle financing for auto and utility vehicles, tractors, cars, commercial vehicles, two-wheelers, three-wheelers, and construction equipment. It also engages in mutual fund distribution and advisory services under the brand name Mahindra Finance Finsmart. The company was formerly known as Maxi Motors Financial Services and changed its name to Mahindra & Mahindra Financial Services in November 1992. Mahindra & Mahindra Financial Services is a subsidiary of Mahindra & Mahindra.

With a market capitalisation of more than Rs 10,000 crore, the company has a dividend yield of 7% as of FY12 and has been quite consistent in paying dividends for the last 5 years.